IMPACT OF SOCIAL RESPONSIBILITY AS A DRIVER OF BUSINESS PERFORMANCE IN INDONESIAN SMES

• Main Author: Dwiki Maulanda, Fadrian
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/74229
• Institution: Institut Teknologi Bandung

The implementation of CSR has been recognized by many studies as affecting SME business activities. However, several studies show that the implementation of CSR is very challenging for small and medium enterprises (SMEs). The purpose of this study is to explore the general concept of Corporate Social Responsibility in SMEs and develop a model related to the relationship between CSR, SME innovation, and their financial performance as well as the interrelationships between these factors. This study applies a structural equation modeling technique with Partial Least Square to test and estimate the relationship between variables. This study used 184 SMEs in Indonesia as a research sample. The results of this study indicate that it is influenced by Voluntary Responsibility and Economics Responsibility Variables, and CSR has an indirect effect on Corporate Financial Performance mediated by Customer Satisfaction and Innovation. In addition, it was also found that the influence of CSR on access to finance in SMEs.